Dell to layoff 6,650 employees as demand for PCs plummets
VergeAPR 2023
This movement towards mass redundancy in tech firms is not indicative of any significant market changes. The layoffs are sparking media attention on an inordinate scale, but the tech sector only accounts for roughly 3% of jobs. In addition, tech workers are relatively well educated, and evidence shows they rapidly find new work in comparison to the rest of the labor market.
These layoffs spark cause for concern. The bounce in stock prices following most tech redundancies may make this move more popular among executives, even though not enough emphasis has been put on the potential impact on consumer spending of layoffs. Tech workers are mostly highly paid and the US economy is heavily dependent on the spending of the top fifth of earners. This ongoing strategy in the sector could easily cause the elite to slow spending.